The payback method assumes that the cash flows:
A) Are an annuity stream.
B) Occur evenly throughout the year.
C) Occur at the end of the year.
D) Are discounted at the IRR rate.
E) Are calculated with the consideration of the time value of money.

Question

Quizplus · Accepted Answer

The payback method assumes that cash flows occur evenly throughout the year, allowing for a straightforward calculation of the time it takes to recover the initial investment.

The Payback Method Assumes That the Cash Flows